Domestic
Cascading Negative Effects
Tax and customs administrations are posting rather encouraging results. Strengthened anti-fraud operations in tax and customs have recovered 43.33 billion ariary in the first half of 2026, compared to 25.38 billion in the same period in 2025. This 70.7% increase in recovered public revenue will obviously have significant weight on the state budget and demonstrates the efforts made by both revenue-managing directorates. The General Tax Directorate (DGI) generated 41.27 billion ariary through tax audits of large companies, up 74.9%. Despite a sharp drop in the number of audited cases (119 compared to 435 a year earlier), average yield per case increased more than sixfold, reflecting better-targeted audits based on risk analysis. For its part, the General Customs Directorate (DGD) recovered 2.06 billion ariary in additional duties and taxes (+15.7%) following customs violations. Operations also resulted in the seizure of over 12 kg of gold, precious stones, 95,050 euros in foreign currency, and protected species including lemurs and radiated tortoises. These results reflect, in any case, strengthened controls and modernization of risk management tools. The objective being to sustainably secure public revenue while improving control effectiveness. These performances are undeniably a success for tax and customs administrations, as well as for the Ministry of Economy and Finance. They contrast, however, with concerns in the private sector, where many companies, already weakened by persistent economic difficulties, perceive tightened tax controls as additional pressure on their cash flow. Pressure that risks causing cascading negative effects when one considers that potential business closures it will trigger will inevitably lead to job losses.
Source: Midi Madagasikara